Credit Scores
What is the highest credit score possible?
What is 850
What does IRA stand for
Individual Retirement Account
What is a budget?
A plan for managing money
True or False: Using a debit card builds credit.
False
What is investing?
Putting money into things that can grow in value
What is a credit score used for?
To show how responsible you are with money
At what age can you start taking money out of an IRA without penalty
59 ½
What is an emergency fund used for?
Unexpected expenses like car repairs
True or False: Having a credit card means you have to go into debt.
false
What is a stock?
A piece of ownership in a company
What happens if you don’t pay your credit card bill on time?
Your score goes down
What is the biggest difference between a Roth and a Traditional IRA
Roth is tax-free in retirement, Traditional is taxed
What is a good rule for saving money each month?
Save at least 20% of your income
If you only make the minimum payment on your credit card, what happens?
You pay more interest and stay in debt longer
True or false: you need a slot of money to start of investin?
False, you can start small
True or False: Checking your credit score hurts it
Glass
True or False: You can open a Roth IRA at any age if you have earned income.
True
If you earn $500 a month, how much should you save following the 50/30/20 rule?
$100
True or False: You should never check your credit report.
False you should check often
If you invest $100 and grows to a $110 whats your current ROI(Return on Investment)
$10
Name two ways to build a good credit score.
Pay bills on time, use credit responsibly
What is the maximum yearly contribution for a Roth IRA under age 50
$6,500 in 2024
Name one way to reduce spending.(think of food)
Cook at home instead of eating out
What’s a common credit score myth people believe?
That closing old credit cards improves your credit (which doesnt make any sense)
What is compound interest
Earning interest on your interest